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7:7:10.1.2.2.30.1.330.1 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.1 Applicability. CCC     [84 FR 69280, Dec. 17, 2019, as amended at 85 FR 67647, Oct. 26, 2020] (a) Purposes. (1) The purposes of the Environmental Quality Incentives Program (EQIP) are to promote agricultural production, forest management, and environmental quality as compatible goals, and to optimize environmental benefits. (2) Through EQIP, NRCS provides technical and financial assistance to eligible agricultural producers, including nonindustrial private forest (NIPF) landowners and Indian Tribes, to help implement conservation practices that address resource concerns related to organic production; soil, water, and air quality; wildlife habitat; nutrient management associated with crops and livestock; pest management; ground and surface water conservation; irrigation management; drought resiliency measures; adapting to and mitigating against increasing weather volatility; energy conservation; and related resource concerns. (3) EQIP's financial and technical assistance helps: (i) Producers comply with environmental regulations and enhance agricultural and forested lands in a cost-effective and environmentally beneficial manner; and (ii) To the maximum extent practicable, avoid the need for resource and regulatory programs. (4) The purposes of EQIP are achieved by planning and implementing conservation practices on eligible land to address identified, new, or expected resource concerns, including such resource concerns related to lands enrolled under a Conservation Reserve Program contract that are transitioning into production as specified in 16 U.S.C. 3835(f). (b) Availability. EQIP is available in any of the 50 States, District of Columbia, Commonwealth of Puerto Rico, Guam, Virgin Islands of the United States, American Samoa, and Commonwealth of the Northern Mariana Islands. (c) Applicability. Each contract enrolled into EQIP, is subject to the regulations in effect on the date it is enrolled.
7:7:10.1.2.2.30.1.330.2 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.2 Administration. CCC       (a) The Commodity Credit Corporation (CCC) funds, facilities, authorities. Because the funds, facilities, and authorities of the CCC are available to NRCS for carrying out EQIP, each reference to NRCS in this part also refers to the CCC's funds, facilities, and authorities where applicable. (b) Locally-led conservation. (1) NRCS supports locally-led conservation by soliciting input from the State Technical Committee and the Tribal Conservation Advisory Council at the State level, and local working groups at the county, parish, or Tribal level to advise NRCS on issues relating to EQIP implementation. (2) Recommendations from the State Technical Committee and the Tribal Conservation Advisory Council may include but are not limited to: (i) Recommendations for program priorities and criteria; (ii) Identification of priority resource concerns; (iii) Recommendations about which conservation practices will be effective to treat identified priority resource concerns; and (iv) Recommendations of program payment rates for payment schedules. (c) Delegations. No delegation in the administration of this part to lower organizational levels will preclude the Chief from making any determinations under this part, redelegating to other organizational levels, or from reversing or modifying any determination made under this part. (d) Waiver. The Chief may modify or waive a nonstatutory, discretionary provision of this part if the Chief determines the application of that provision to a particular limited situation to be inappropriate and inconsistent with the purposes of the program; (e) Scope of agreement authority. NRCS may enter into agreements with other Federal or State agencies, Indian Tribes, conservation districts, units of local government, public or private organizations, acequias, and individuals to assist NRCS with implementation of the program in this part.
7:7:10.1.2.2.30.1.330.3 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.3 Definitions. CCC     [84 FR 69280, Dec. 17, 2019, as amended at 85 FR 67647, Oct. 26, 2020] The definitions in this section apply to this part and all documents issued in accordance with this part, unless specified elsewhere in this part: Agricultural operation means a parcel or parcels of land whether contiguous or noncontiguous, which is under the effective control of the producer at the time the producer applies for a contract, and which is operated by the producer with equipment, labor, management, and production, or cultivation practices that are substantially separate from other operations. Animal feeding operation (AFO) means a lot or facility (other than an aquatic animal production facility) where the conditions in this definition are met: (1) Animals have been, are, or will be stabled or confined and fed or maintained for a total of 45 days or more in any 12-month period; and (2) Crops, vegetation, forage growth, or post-harvest residues are not sustained in the normal growing season over any portion of the lot or facility. Animal waste storage or treatment facility means a structural conservation practice, implemented on an AFO consistent with the requirements of a comprehensive nutrient management plan (CNMP) and Field Office Technical Guide (FOTG), which is used for storing, treating, or handling animal waste or by-products, such as animal carcasses. Applicant means a producer who has requested in writing to participate in EQIP. At-risk species means any plant or animal species listed as threatened or endangered; proposed or candidate for listing under the Endangered Species Act; a species listed as threatened or endangered under State law or Tribal law on Tribal land; State or Tribal land species of conservation concern; or other plant or animal species or community, as determined by the State Conservationist, with advice from the State Technical Committee or Tribal Conservation Advisory Council, that has undergone, or is likely to undergo, population decline and may become imperiled without direct intervention. Beginning farmer or rancher means a person, Indian Tribe, Tribal…
7:7:10.1.2.2.30.1.330.4 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.4 National priorities. CCC     [84 FR 69280, Dec. 17, 2019, as amended at 85 FR 67647, Oct. 26, 2020] (a) The national priorities in paragraphs (a)(1) through (8) of this section, consistent with statutory resources concerns, include soil quality, water quality and quantity, plants, energy, wildlife habitat, air quality, increased weather volatility, and related natural resource concerns, that may be used in EQIP implementation are: (1) Reductions of nonpoint source pollution, such as nutrients, sediment, pesticides, or excess salinity in impaired watersheds consistent with total maximum daily loads (TMDL) where available; (2) The reduction of ground and surface water contamination; (3) The reduction of contamination from agricultural sources, such as animal feeding operations; (4) Conservation of ground and surface water resources, including improvement of irrigation efficiency and increased resilience against drought and weather volatility; (5) Reduction of emissions, such as particulate matter, nitrogen oxides, volatile organic compounds, and ozone precursors and depleters that contribute to air quality impairment violations of the National Ambient Air Quality Standards; (6) Reduction in soil erosion and sedimentation from unacceptable levels and improvement of soil health on eligible land; (7) Promotion of at-risk species habitat conservation including development and improvement of wildlife habitat; and (8) Energy conservation to help save fuel, improve efficiency of water use, maintain production, and protect soil and water resources by more efficiently using fertilizers and pesticides. (b) In consultation with other Federal agencies and Indian Tribes, NRCS may undertake periodic reviews of the national priorities and the effects of program delivery at the State and local levels to adapt the program to address emerging resource issues. NRCS may— (1) Use the national priorities to guide the allocation of EQIP funds to the NRCS State offices; (2) Use the national priorities in conjunction with States, Indian Tribes, and local priorities to assist with prioritization and selection of EQIP applicatio…
7:7:10.1.2.2.30.1.330.5 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.5 Outreach activities. CCC       (a) NRCS conducts outreach activities at the national, State, Tribal, and local levels to ensure that producers whose land has environmental problems or priority resource concerns are aware and informed that they may be eligible to apply for program assistance. (b) NRCS will make special outreach to eligible producers with historically low participation rates, including but not restricted to, limited resource, socially disadvantaged, small-scale, beginning farmers or ranchers, veteran farmers or ranchers, Indian Tribes, Alaska Natives, and Pacific Islanders. (c) NRCS provides outreach to ensure producer participation is not limited based on the size or type of operation or production system, including small-scale, specialty crop, and organic production. (d) NRCS will notify historically underserved producers, at the time of enrollment in the program, of the option to receive advance payments under § 1466.24 of this part and document the election of each of these producers.
7:7:10.1.2.2.30.1.330.6 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.6 Program requirements. CCC     [84 FR 69280, Dec. 17, 2019, as amended at 85 FR 67647, Oct. 26, 2020] (a) General. Program participation is voluntary. An applicant must develop an EQIP plan of operations for the eligible land to be treated which serves as the basis for the EQIP contract. Under EQIP, NRCS provides participants with technical assistance and payments to plan and apply needed conservation practices. (b) Applicant eligibility. To be eligible to participate in EQIP, an applicant must— (1) Be in compliance with the highly erodible land and wetland conservation provisions at 7 CFR part 12; (2) Be a producer as determined by NRCS; (3) Have control of the land for the term of the proposed contract unless an exception is made by the Chief in the case of land administered by the Bureau of Indian Affairs (BIA), Indian lands, or other instances in which the Chief determines sufficient assurance of control; (i) The Chief may determine that land administered by BIA, Indian land, or other such circumstances provides sufficient assurance of control, and (ii) If the applicant is a tenant of the land involved in agricultural production or forestry management, the Chief may require the applicant to obtain the written concurrence of the landowner to apply a conservation practice; (4) Agree to implement the EQIP plan of operations according to the provisions and conditions established in the EQIP contract, including the EQIP contract appendix; (5) Submit an EQIP plan of operations or plan developed for the purposes of acquiring an air or water quality permit, provided these plans contain elements equivalent to those elements required by an EQIP plan of operations and are acceptable to NRCS as being consistent with the purposes of the program; (6) Supply information, as required by NRCS, to determine eligibility for the program, including but not limited to, information to verify the applicant's status as a historically underserved producer, and payment eligibility as established by 7 CFR part 1400; and (7) Provide a list of all members of the legal entity and embedded entities along with members' tax iden…
7:7:10.1.2.2.30.1.330.7 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.7 EQIP plan of operations. CCC     [84 FR 69280, Dec. 17, 2019, as amended at 85 FR 67647, Oct. 26, 2020] (a) All conservation practices in the EQIP plan of operations must be approved by NRCS and developed and carried out in accordance with the applicable NRCS planning and FOTG technical requirements. (b) The participant is responsible for implementing the EQIP plan of operations according to the approved implementation schedule. (c) The EQIP plan of operations must include— (1) A description of the participant's specific conservation objectives to be achieved; (2) To the extent practicable, the quantitative or qualitative goals for achieving the participant's conservation and natural resource objectives; (3) A description of one or more conservation practices in the conservation management system, including conservation planning, design, or installation activities to be implemented to achieve the conservation objectives; (4) A schedule for implementing the conservation practices, including timing, sequence, operation, and maintenance; and (5) Information that enables evaluation of the effectiveness of the plan of operations in achieving the conservation objectives. (d) If an EQIP plan of operations includes an animal waste storage or treatment facility to be implemented on an AFO, the participant must agree to: (1) Develop a CNMP by the end of the contract period; and (2) Implement any applicable conservation practices in the EQIP plan of operation consistent with an approved CNMP. (e) An EQIP plan of operations on forest land must implement conservation practices consistent with an approved forest management plan. (f) NRCS may provide a participant with assistance to implement an EQIP plan of operations which includes irrigation-related practices to address a water conservation resource concern only if the participant establishes through documented evidence, including irrigation history, that such assistance will facilitate a reduction in ground or surface water use on the agricultural operation, unless the producer is participating in a watershed-wide project, as approved by NRCS, which will effective…
7:7:10.1.2.2.30.1.330.8 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.8 Conservation practices. CCC       (a) NRCS will determine the conservation practices for which participants may receive program payments and provide a list of eligible practices to the public. (b) Payment will not be made to a participant for conservation practices that— (1) Either the applicant or another producer has initiated or implemented prior to application for the program; or (2) Has been initiated or implemented prior to contract approval, unless a waiver was granted by the Chief prior to the practice implementation. (c) Unless waived for circumstances as determined by the Chief, a participant is eligible for payments for water conservation and irrigation-related conservation practices only on land that has been irrigated for 2 of the last 5 years prior to application for assistance. (d) Upon the development of a new technology or management approach that provides a high potential for optimizing conservation benefits, NRCS may approve an interim conservation practice standard that incorporates the new technology or management approach and provide financial assistance for pilot work to evaluate and assess the performance, efficiency, and effectiveness of the new technology or management approach. (e) NRCS will at least annually consult with State Technical Committees, Tribal Conservation Advisory Councils, local work groups, and other stakeholders to identify conservation practices with appropriate purposes and the criteria for their application to address priorities to establish wildlife habitat including— (1) Upland wildlife habitat; (2) Wetland wildlife habitat; (3) Habitat for threatened and endangered species; (4) Fish habitat; (5) Habitat on pivot corners and other irregular areas of a field; and (6) Other types of wildlife habitat, as determined by NRCS.
7:7:10.1.2.2.30.1.330.9 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM A Subpart A—General Provisions   § 1466.9 Technical services provided by qualified personnel not affiliated with USDA. CCC       (a) NRCS may use the services of qualified third-party TSPs in its delivery of EQIP technical assistance in accordance with 7 CFR part 652. (b) Participants may obtain technical services from certified TSPs in accordance with 7 CFR part 652. (c) NRCS retains approval authority of work done by non-NRCS personnel for the purpose of approving EQIP payments.
7:7:10.1.2.2.30.2.330.1 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM B Subpart B—Contracts and Payment   § 1466.20 Application for contracts and selecting applications. CCC     [84 FR 69280, Dec. 17, 2019, as amended at 85 FR 67647, Oct. 26, 2020] (a) General guidelines. (1) Any producer who has eligible land may submit an application for participation in EQIP. (2) NRCS, to the greatest extent practicable, will group applications of similar crop, forestry, and livestock operations for evaluation purposes. (3) Applications may be accepted on a continuous basis throughout the year. (4) Producers who are members of a joint operation may file a single application for ranking purposes for the joint operation. (b) Ranking guidelines. In evaluating EQIP applications, NRCS— (1) Will establish ranking pools to address a specific resource concern by geographic area or agricultural operation type with advice from the State Technical Committee, Tribal Conservation Advisory Council, or local working groups; (2) Will develop an evaluation process using, where applicable, science-based tools to prioritize and rank applications for funding that considers national, State, and local priority resource concerns, taking into account the factors related to conservation benefits to address identified resource concerns through implementation of conservation practices such as: (i) The degree of cost-effectiveness of the proposed conservation practices; (ii) The magnitude of the expected conservation benefits resulting from the conservation treatment and the priority of the resource concerns that have been identified at the local, State, and national levels; (iii) How effectively and comprehensively the project addresses the designated resource concern or resource concerns; (iv) Use of conservation practices that provide long-term conservation enhancements; (v) Compliance with Federal, State, Tribal, or local regulatory requirements concerning soil, water, and air quality; wildlife habitat; and ground and surface water conservation; (vi) Willingness of the applicant to complete all conservation practices in an expedited manner; (vii) The ability to improve existing conservation practices or systems which are in place at the time the application is accepted, or that…
7:7:10.1.2.2.30.2.330.2 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM B Subpart B—Contracts and Payment   § 1466.21 Contract requirements. CCC       (a) Requirement for a contract. For a participant to receive payments, the participant must enter into a contract agreeing to implement one or more conservation practices. Payment for technical services may be included in the contract pursuant to requirements of this part. (b) Contract terms. An EQIP contract will— (1) Identify all conservation practices to be implemented, the timing of practice installation, the O&M requirements for the practices, and applicable payments allocated to the practices under the contract; (2) Have a term for no more than 10 years; (3) Incorporate all provisions as required by law or statute, including requirements that the participant will— (i) Not implement any practices on the enrolled land that would defeat the program's purposes, (ii) Refund any program payments received with interest, and forfeit any future payments under the program, on the violation of a term or condition of the contract, consistent with the provisions of § 1466.26, (iii) Refund all program payments received on the transfer of the right and interest of the producer in land subject to the contract, unless the transferee of the right and interest agrees to assume all obligations, including O&M of the EQIP contract's conservation practices, consistent with the provisions of § 1466.25, (iv) Develop and implement any conservation practices identified in an EQIP plan of operations consistent with a CNMP when the EQIP contract includes an animal waste management facility on an AFO, (v) Implement conservation practices consistent with an approved forest management plan when the EQIP plan of operations includes forest-related practices that address resource concerns on NIPF, (vi) Supply information as required by NRCS to determine compliance with contract and program requirements, and (vii) Specify the participant's responsibilities for the O&M of the applied conservation practices, consistent with the provisions of § 1466.22; and (4) Specify any other provision determined necessary or appropriate by NR…
7:7:10.1.2.2.30.2.330.3 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM B Subpart B—Contracts and Payment   § 1466.22 Conservation practice operation and maintenance (O&M). CCC       (a) The contract will incorporate the O&M agreement that addresses the O&M of conservation practices applied under the contract. (b) NRCS expects the participant to operate and maintain each conservation practice installed under the contract for its intended purpose for the conservation practice lifespan as specified in the O&M agreement. (c) Conservation practices installed before the contract execution but included in the contract to obtain the conservation benefits agreed upon, must be operated and maintained as specified in the contract and O&M agreement. (d) NRCS may periodically inspect the conservation practice during the contract duration as specified in the O&M agreement to ensure that O&M requirements are being carried out and that the conservation practice is fulfilling its intended objectives. (e) If NRCS finds during the contract that a participant is not operating and maintaining practices in an appropriate manner, NRCS may terminate the contract and request a refund of payments made for that conservation practice under the contract.
7:7:10.1.2.2.30.2.330.4 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM B Subpart B—Contracts and Payment   § 1466.23 Payment rates. CCC       (a) Conservation practices. NRCS will develop a list of conservation practices eligible for payment under the program, which considers: (1) The conservation practice cost-effectiveness, implementation efficiency, and innovation; (2) The degree and effectiveness in treating priority resource concerns; (3) The number of resource concerns the practice addresses; (4) The longevity of the practice's conservation benefit; (5) The conservation practice's ability to assist producers in meeting regulatory requirements; and (6) Other pertinent local considerations. (b) Payment schedules. The Chief will determine the process and methodology used for development, review, and approval of payment schedules to support accurate and cost-effective delivery of program benefits, including determination of estimated incurred costs and income foregone associated with implementation of all financially-supported conservation practices or activities. (1) Payment to a participant for performing a practice may not exceed, as determined by NRCS, the maximum payment percentages in paragraphs (b)(1)(i) through (iii) of this section: (i) Seventy-five percent of the estimated costs incurred by implementing the conservation practice, (ii) One hundred percent of the estimated income foregone, or (iii) Both conditions in paragraphs (b)(1)(i) and (ii) of this section, where a producer incurs costs in implementing a conservation practice and foregoes income related to that practice implementation. (2) In determining the amount and rate of estimated income foregone, NRCS may assign higher significance to conservation practices which promote— (i) Soil health; (ii) Water quality and quantity improvement; (iii) Nutrient management; (iv) Pest management; (v) Air quality improvement; (vi) Wildlife habitat development, including pollinator habitat; (vii) Invasive species management; or (viii) Other natural resource concerns of regional or national significance, as determined by NRCS. (3) Notwithstanding paragraph (b)(1) of this se…
7:7:10.1.2.2.30.2.330.5 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM B Subpart B—Contracts and Payment   § 1466.24 EQIP payment restrictions and exceptions. CCC       (a) EQIP general aggregate payment limitation. (1) The total amount of financial assistance payments paid to a person or legal entity under this part, during the period of fiscal years 2019 through 2023, may not exceed an aggregate of $450,000, directly or indirectly. (2) Except as otherwise provided in § 1466.6, the limitation in paragraph (a)(1) of this section cannot be waived. (b) Organic production aggregate payment limitation. Payments for conservation practices related to organic production to a person or legal entity, directly or indirectly, during the period of fiscal years 2019 through 2023, may not exceed an aggregate of $140,000. (c) Payment eligibility criteria. To determine eligibility for payments, NRCS will use the criteria in paragraphs (c)(1) through (9) of this section: (1) The provisions in 7 CFR part 1400, Payment Limitation and Payment Eligibility; (2) Except as otherwise set forth in this part, States, political subdivisions, and entities thereof are not considered to be producers eligible for payment; (3) In accordance with 7 CFR part 1400, an applicant applying as a joint operation or legal entity must provide a list of all members of the legal entity and joint operation and associated embedded entities, along with the members' tax identification numbers and percentage interest in the joint operation or legal entity, which all legal entities or persons applying, either alone or as part of a joint operation, must provide to be eligible to receive an EQIP payment; (4) Contracts with Indian Tribes are not subject to payment or contract limitations, provided that— (i) Indian Tribes certify in writing that no one individual, directly or indirectly, will receive more than the payment limitation, (ii) Certification provided at the time of enrollment covers the entire contract period, and (iii) The Tribal entity provides, upon request from NRCS, a listing of individuals and payment made, by Social Security number or other unique identification number, during the previous year for …
7:7:10.1.2.2.30.2.330.6 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM B Subpart B—Contracts and Payment   § 1466.25 Contract modifications and transfers of contract rights. CCC       (a) NRCS may modify a contract, if— (1) The participant agrees to the modification; and (2) NRCS determines the modified contract continues to meet the purposes of the program. (b) NRCS may approve a transfer of the contract if— (1) NRCS receives written notice that identifies the new producer who will take control of the acreage, as required in paragraph (e) of this section; (2) The new producer meets program eligibility requirements within a reasonable time frame, as specified in the EQIP contract; (3) The new producer agrees to assume the rights and responsibilities for the acreage under the contract; and (4) NRCS determines that the purposes of the program will continue to be met despite the original participant's losing control of all or a portion of the land under contract. (c)(1) Until NRCS approves the transfer of contract rights, the transferee is not a participant in the program and may not receive payment for a conservation practice commenced prior to approval of the contract transfer. (2) For contract payment purposes, NRCS will consider the transferor to be the participant to whom payments will be made for conservation practices implemented during the pendency of the approval of contract transfer. (d) NRCS may terminate the entire contract if, within the time specified in the contract, a participant does not provide NRCS with written notice regarding any voluntary or involuntary loss of control of any acreage under the EQIP contract, which includes changes in a participant's ownership structure or corporate form. (e) Unless NRCS receives timely notice of a loss of control and approves a transfer of contract rights, a participant losing control of any acreage will constitute a violation of the EQIP contract and NRCS may terminate the contract and require a participant to refund all or a portion of any financial assistance provided. (f) NRCS may not approve a contract transfer and may terminate the contract in its entirety if NRCS determines that the loss of control is voluntary, the new pr…
7:7:10.1.2.2.30.2.330.7 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM B Subpart B—Contracts and Payment   § 1466.26 Contract violations and terminations. CCC       (a) NRCS may terminate a contract— (1) Without the consent of the participant where NRCS determines that the participant violated the contract; or (2) With the consent of the participant if NRCS determines that the termination is in the public interest. (b)(1) NRCS may allow a participant in a contract terminated in accordance with the provisions of paragraph (a) of this section to retain a portion of any payments received appropriate to the effort the participant has made to comply with the contract, or in cases of hardship, when forces beyond the participant's control prevented compliance with the contract. (2) The condition that is the basis for the participant's inability to comply with the contract must not have existed at the time the contract was executed by the participant. (3) If a participant believes that such a hardship condition exists, the participant may submit a request with NRCS for relief pursuant to this paragraph and any such request must contain documentation sufficient for NRCS to make a determination that this hardship condition exists. (c)(1) If NRCS determines that a participant is in violation of the terms of a contract, O&M agreement, or documents incorporated by reference into the contract, NRCS may give the participant a reasonable period of time, as determined by NRCS, to correct the violation and comply with the terms of the contract and attachments thereto. (2) If a participant continues to be in violation after such reasonable time, NRCS may terminate the EQIP contract in accordance with § 1466.26(f). (d) Notwithstanding the provisions of paragraph (c) of this section, a contract termination is effective immediately upon a determination by NRCS that the participant— (1) Submitted false information or filed a false claim; (2) Engaged in any act, scheme, or device for which a finding of ineligibility for payments is permitted under the provisions of § 1466.35; or (3) Incurred a violation of the contract provisions that cannot be corrected in a timeframe established by NRC…
7:7:10.1.2.2.30.3.330.1 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.30 Definitions. CCC       In addition to the terms defined in § 1466.3, the definitions in this section apply to this subpart: Eligible entity means, as determined by NRCS: (1) A third-party private entity the primary business of which is related to agriculture; (2) A nongovernmental organization with experience working with agricultural producers; or (3) A governmental organization. Grant agreement means a document describing a relationship between NRCS and a State or local government, or other recipient whenever the principal purpose of the relationship is the transfer of a thing of value to a recipient in order to accomplish a public purpose of support or stimulation authorized by Federal law and substantial Federal involvement is not anticipated. Grant Review Board consists of representatives of NRCS staff as determined by the Chief. On-Farm Conservation Innovation Trial (OFCIT) agreement means an agreement that governs the relationship between NRCS and the participant for the purposes of OFCIT implementation. An OFCIT agreement may be between either NRCS and a producer or NRCS and an eligible entity. On-farm conservation research means an investigation conducted to answer a specified conservation-related question using a statistically valid design, while employing farm-scale equipment on farm fields. Project means the activities as defined within the scope of the grant agreement or cooperative agreement. Project director means the individual responsible for the technical direction and management of the project as designated in the application. Technical Peer Review Panel means a panel consisting of Federal and non-Federal technical advisors who possess expertise in a discipline or disciplines deemed important to provide a technical evaluation of project proposals submitted under the funding opportunity announcement.
7:7:10.1.2.2.30.3.330.2 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.31 Purpose and scope. CCC     [84 FR 69280, Dec. 17, 2019, as amended at 85 FR 67647, Oct. 26, 2020] (a) The purpose of Conservation Innovation Grants (CIG) is to stimulate the development and adoption of innovative conservation approaches and technologies, including field research, while leveraging Federal investment in environmental enhancement and protection in conjunction with agricultural production. Notwithstanding any limitation of this part, NRCS administers CIG in accordance with this subpart. Unless otherwise provided for in this subpart, grants under CIG are subject to the provisions of 2 CFR part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. (b) Applications for CIG are accepted from the 50 States, District of Columbia, Commonwealth of Puerto Rico, Guam, Virgin Islands of the United States, American Samoa, and Commonwealth of the Northern Mariana Islands. (c) NRCS may award grants to applicants either through a national competition or, at the Chief's discretion, separate State-level components, either of which may be offered multiple times each fiscal year. (d) Applications for CIG should propose innovative projects or activities that— (1) Demonstrate the use of innovative approaches and technologies to leverage Federal investment in environmental enhancement and protection, in conjunction with agricultural production; (2) Promote innovative on-the-ground conservation, including pilot projects and field demonstrations of promising approaches or technologies; (3) Lead to the transfer of conservation technologies, management systems, and innovative approaches (such as market-based systems) into NRCS technical manuals and guides or to the private sector. (e) For NRCS to consider a proposal eligible for CIG funding, the applicant must clearly demonstrate the innovative features of the proposed technology or approach. (f) An applicant may demonstrate the innovative features of the proposed technology or approach through a variety of means, such as by establishing that it— (1) Uses a technology or approach that was studied sufficiently to ind…
7:7:10.1.2.2.30.3.330.3 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.32 Conservation innovation grant funding. CCC     [84 FR 69280, Dec. 17, 2019, as amended at 85 FR 67648, Oct. 26, 2020] (a) General guidelines. The guidelines in paragraphs (a)(1) through (5) of this section apply for national-level CIG awards: (1) CIG funding is available for single- or multi-year projects. (2) The Chief will determine the funding level for CIG on an annual basis. (3) CIG funding is made available from EQIP funds made available for EQIP. (4) The Chief may establish funding limits for individual grants. (5) The Chief will publicly announce funding for CIG. (b) Project or activity funding. (1) Selected applicants may receive grants or cooperative agreements of up to 50 percent of the total project cost, not to exceed the federal project cap. (2) Applicants must provide non-federal funding at least equal to the amount of federal funds requested. (3) Non-federal funds must be derived from cash or in-kind sources. (c) Authority to reduce matching requirement. The Chief may reduce the matching requirements of paragraphs (b)(1) and (2) of this section, provided that the applicant is: (1) An historically underserved producer; (2) A community-based organization comprised of, representing, or exclusively working with historically underserved producers on a CIG project; (3) Developing an innovative conservation approach or technology specifically targeting historically underserved producers' unique needs and limitations; or (4) An 1890 or 1994 land grant institution (7 U.S.C. 3222 et seq. ), Hispanic-serving institution (20 U.S.C. 1101a), or other minority-serving institution, such as an historically Black college or university (20 U.S.C. 1061), a tribally controlled college or university (25 U.S.C. 1801), or Asian American and Pacific Islander-serving institution (20 U.S.C. 1059g). (d) Limitation to funding technical assistance. CIG provides financial assistance to grantees. Procurement of any technical assistance to agricultural producers required to carry out a project is the responsibility of the grantee. A Federal technical representative designated by NRCS will provide technical oversight for gr…
7:7:10.1.2.2.30.3.330.4 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.33 Conservation innovation grant administration. CCC       (a) CIG applications must describe the use of innovative approaches or technologies to address announced national or State program priorities. (b) NRCS may consider as eligible for CIG any individual or non-federal entity; however, all agricultural producers receiving a direct or indirect payment through participation in a CIG project to address announced national or State program priorities must— (1) Be in compliance with the highly erodible land and wetland conservation provisions of 7 CFR part 12; (2) Be a producer as determined by NRCS; and (3) Have control of the land for the term of the proposed contract unless an exception is made by the Chief in the case of land administered by the Bureau of Indian Affairs (BIA), Indian lands, or other instances in which the Chief determines that there is sufficient assurance of control. (c) NRCS will annually publish detailed guidance on how to apply for the grants competition(s) to address announced national or State program priorities.
7:7:10.1.2.2.30.3.330.5 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.34 Award determinations. CCC       (a) A peer review panel evaluates completed applications based on the application evaluation criteria that address announced national or State program priorities. (b) The peer review panel forwards compiled application evaluations to a Grant Review Board (Board). (c) The Board reviews the peer review panel evaluations and considers review comments from State Conservationists. The Board then makes recommendations for awards to the Chief, who makes final selections. (d) The NRCS National Headquarters makes a grant or cooperative agreement award after the Chief selects a grantee and the grantee agrees to the terms and conditions of the NRCS grant or cooperative agreement document.
7:7:10.1.2.2.30.3.330.6 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.35 State-level conservation innovation grant component. CCC       (a) NRCS has the option of implementing a State-level CIG component. Except as otherwise indicated of this section, State-level CIG awards follows the requirements of this subpart for national-level CIG awards. (b) Funding availability, application, and submission information for State competitions are announced through public notices separately from the national program and emphasize projects that cover limited geographic areas including individual farms, multicounty areas, or small watersheds. (c) The State Conservationist determines the funding level for the State CIG competition and creates a review process for applications that considers various relevant criteria, including any potential conflicts of interest. (d) NRCS may choose to adhere to the CIG national priorities or select other priority resource concerns.
7:7:10.1.2.2.30.3.330.7 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.36 Intellectual property. CCC       (a) This section applies to all CIG awardees under this subpart. (b) Allocation of rights to patents and inventions shall be in accordance with 2 CFR part 200. (c) Small businesses may retain the principal worldwide patent rights to any invention developed with the support of USDA. (d) USDA may— (1) Receive a royalty-free license for Federal Government use, (2) Reserve the right to require the patentee to license others in certain circumstances, and (3) Require that anyone exclusively licensed to sell the invention in the United States must normally manufacture it domestically.
7:7:10.1.2.2.30.3.330.8 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.37 On-Farm Conservation Innovation Trials. CCC       (a) Purpose. The purpose of the On-Farm Conservation Innovation Trials (OFCIT) under this section is for NRCS to facilitate and incentivize experimentation and testing of new and innovative conservation approaches on farms in a diversity of geographic regions and on multiple scales. (b) Eligibility determinations. When determining eligibility for a private or nongovernmental organization, whether or not that organization is operated for profit, to enroll in OFCIT, NRCS may consider multiple factors including— (1) The extent to which the organization conducts business that is related to agriculture; (2) The quantity and quality of experience the organization has working with agricultural producers; or (3) Other factors related to the organization's likelihood to succeed or the proposed trial's likelihood to fulfill the purpose of OFCIT, as determined by the Chief. (c) Agreements with eligible entities. An OFCIT agreement with an eligible entity shall contain provisions indicating how NRCS or the eligible entity shall provide technical assistance to producers. (d) Innovation determinations. Notwithstanding any limitation in § 1466.31(f) of this subpart, when determining whether to approve of a proposed conservation approach as new or innovative, NRCS may consider multiple factors including— (1) The extent to which the proposed conservation approach makes use of new or innovative conservation practices, systems, or technology; (2) The extent to which the proposed conservation approach applies conservation practices, systems, or technology in new or innovative ways, geographic regions, or agricultural sectors; or (3) The extent to which the proposed conservation approach uses new or innovative processes or financing for implementing conservation practices or activities. (e) Requirements for producers. When considering whether to enroll the land of a producer under an OFCIT agreement, NRCS first determines that— (1) The participating producer complies with the highly erodible land and wetland cons…
7:7:10.1.2.2.30.3.330.9 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM C Subpart C—Conservation Innovation   § 1466.38 Soil Health Demonstration trial. CCC       (a) The Soil Health Demonstration (SHD) shall make use of the OFCIT process, including eligibility requirements, and funding set forth in § 1466.37 to provide incentives to producers to implement conservation practices that improve soil health, increase carbon levels in the soil, or both. (b) In carrying out SHD, NRCS shall coordinate with eligible entities to establish protocols for measuring carbon levels in the soil and testing carbon levels on land where conservation practices described in paragraph (a) of this section were applied to evaluate gains in soil health as a result of the practices implemented by the producers in the soil health demonstration trial. (c) For each SHD contract, NRCS shall ensure that appropriate data is collected and analyzed while respecting relevant privacy safeguards by transforming the data into statistical or aggregated form so as not to include any identifiable or personal information of individual producers.
7:7:10.1.2.2.30.4.330.1 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM D Subpart D—Incentive Contracts   § 1466.40 High priority areas. CCC       (a) The Chief shall, in consultation with the State Technical Committee, develop a set of high priority areas for each State. (b) The set of high priority areas described in paragraph (a) of this section must encompass every region within the State. (c) A high priority area may encompass an entire State or overlap with other high priority areas such that a given parcel of land may exist in multiple high priority areas. (d) The Chief, in consultation with the State Technical Committee, shall identify up to three priority resource concerns for each land use within a given high priority area. (e) An identification under paragraph (d) of this section of a priority resource concern for one land use shall not preclude NRCS from identifying the same priority resource concern for a different land use within the same high priority area. (f) NRCS shall identify which practices qualify as incentive practices for each land use within each high priority area based on the priority resource concern(s) identified for that land use. (g) NRCS shall make public all determinations made under this section.
7:7:10.1.2.2.30.4.330.2 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM D Subpart D—Incentive Contracts   § 1466.41 Incentive contract selection. CCC       (a) NRCS will give priority to applications that address eligible priority resource concerns identified under § 1466.40. (b) NRCS will evaluate applications relative to other applications for similar agriculture and forest operations. (c) NRCS shall not select an application for an incentive contract that does not contain at least one qualifying incentive practice as identified under § 1466.40.
7:7:10.1.2.2.30.4.330.3 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM D Subpart D—Incentive Contracts   § 1466.42 Incentive contract requirements. CCC       (a) Requirement for a contract. (1) In order for a participant to receive incentive payments, the participant must enter into an incentive contract agreeing to implement one or more incentive practices. (2) Payment for technical services may be included in the contract pursuant to requirements of this part. (b) Incentive contract terms. An incentive contract will— (1) Identify all incentive practices to be implemented, the timing of practice installation, responsibilities of the participant, the O&M requirements for the practices, and applicable payments allocated to the practices under the contract; (2) Have a period as set forth in § 1466.43; (3) Specify any other provision determined necessary or appropriate by NRCS to achieve the technical requirements of a practice or purposes of the program. (c) Termination of the incentive contract. NRCS may terminate an incentive contract consistent with the provisions of § 1466.26.
7:7:10.1.2.2.30.4.330.4 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM D Subpart D—Incentive Contracts   § 1466.43 Incentive contract period. CCC       (a) NRCS shall apply science-based criteria to determine an appropriate contract period to achieve desired conservation benefits. (b) The period determined as appropriate under paragraph (a) of this section shall not be less than 5 years nor exceed 10 years.
7:7:10.1.2.2.30.4.330.5 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM D Subpart D—Incentive Contracts   § 1466.44 Incentive payment rates and restrictions. CCC       (a) Aggregate payment limitation. (1) Notwithstanding the payment limitation in § 1466.24, the total amount of payments paid to a person or legal entity under this subpart, during the period of fiscal years 2019 through 2023, may not exceed an aggregate of $200,000, directly or indirectly. (2) Payments received for technical assistance will be excluded from the limitation in paragraph (a)(1) of this section. (3) The limitation in paragraph (a)(1) of this section cannot be waived. (b) Restrictions and exceptions. Except as otherwise indicated in paragraph (a) of this section, incentive contracts are subject to the payment restrictions and exceptions as set forth in § 1466.24. (c) Implementation payments. The payment rates for implementation of incentive practices shall be identical to the payment rates for practice implementation as set forth in § 1466.23. (d) Annual payments. In addition to the payment for implementation set forth in paragraph (c) of this section, NRCS may award annual payments through incentive contracts to compensate the participant for up to 100 percent of the costs of— (1) O&M of the incentive practice; and (2) Income foregone by the participant, including payments to address, as appropriate— (i) Increased economic risk, (ii) Loss in revenue due to anticipated reductions in yield, and (iii) Economic losses during transition to a resource-conserving cropping system, resource-conserving crop rotation, or resource-conserving land uses.
7:7:10.1.2.2.30.5.330.1 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM E Subpart E—General Administration   § 1466.50 Appeals. CCC       A participant may obtain administrative review of an adverse decision under EQIP in accordance with 7 CFR parts 11 and 614. Determination in matters of general applicability, such as payment rates, payment limits, the designation of identified priority resource concerns, and eligible conservation practices are not subject to appeal.
7:7:10.1.2.2.30.5.330.2 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM E Subpart E—General Administration   § 1466.51 Compliance with regulatory measures. CCC       Participants who carry out conservation practices will be responsible for obtaining the authorities, rights, easements, permits, or other approvals necessary for the implementation, operation, and maintenance of the conservation practices in keeping with applicable laws and regulations. Participants will be responsible for compliance with all laws and for all effects or actions resulting from the participant's performance under the contract.
7:7:10.1.2.2.30.5.330.3 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM E Subpart E—General Administration   § 1466.52 Access to operating unit. CCC       An authorized NRCS representative will have the right to enter land under an NRCS conservation program contract for the purposes of determining eligibility and for ascertaining the accuracy of any representations related to contract performance. Access will include the right to provide technical assistance, determine eligibility, inspect any work undertaken under the contract, and collect information necessary to evaluate the conservation practice performance specified in the contract. The NRCS representative will make an effort to contact the participant prior to the exercising this provision.
7:7:10.1.2.2.30.5.330.4 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM E Subpart E—General Administration   § 1466.53 Equitable relief. CCC       (a) If a participant relied upon the advice or action of an authorized NRCS representative and did not know, or have reason to know, that the action or advice was improper or erroneous, NRCS may accept the advice or action as meeting program requirements and may grant relief, to the extent it is deemed desirable by NRCS, to provide a fair and equitable treatment because of the good-faith reliance on the part of the participant. The financial or technical liability for any action by a participant that was taken based on the advice of an NRCS certified non-USDA TSP is the responsibility of the certified TSP and will not be assumed by NRCS when NRCS authorizes payment. Where a participant believes that detrimental reliance on the advice or action of an NRCS representative resulted in ineligibility or a program violation, but the participant believes that a good-faith effort to comply was made, the participant may request equitable relief under 7 CFR 635.3. (b) If, during the term of an EQIP contract, a participant has been found in violation of a provision of the EQIP contract, the O&M agreement, or any document incorporated by reference through failure to fully comply with that provision, the participant may be eligible for equitable relief under 7 CFR 635.4. (c) NRCS reserves the right to correct all errors in entering data or the results of computations in an EQIP contract. If a participant does not agree to such corrections, NRCS shall terminate the contract.
7:7:10.1.2.2.30.5.330.5 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM E Subpart E—General Administration   § 1466.54 Offsets and assignments. CCC       (a) Except as provided in paragraph (b) of this section, any payment or portion thereof to any person, joint venture, legal entity, or Tribe will be made without regard to questions of this title under State law and without regard to any claim or lien against the crop, or proceeds thereof, in favor of the owner or any other creditor except agencies of the U.S. Government. The regulations governing offsets and withholdings found at part 1403 of this chapter will be applicable to contract payments. (b) EQIP participants may assign any payments in accordance with part 1404 of this chapter.
7:7:10.1.2.2.30.5.330.6 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM E Subpart E—General Administration   § 1466.55 Misrepresentation and scheme or device. CCC       (a) A person, joint operation, legal entity, or Indian Tribe that is determined to have erroneously represented any fact affecting a program determination made in accordance with this part will not be entitled to contract payments and must refund to NRCS all payments, plus interest, determined in accordance with 7 CFR part 1403. (b) A producer who is determined to have knowingly— (1) Adopted any scheme or device that tends to defeat the purpose of the program; (2) Made any fraudulent representation; (3) Adopted any scheme or device for the purpose of depriving any tenant or sharecropper of the payments to which such person would otherwise be entitled under the program; or (4) Misrepresented any fact affecting a program determination, will refund to NRCS all payments, plus interest, determined in accordance with 7 CFR part 1403, received by such producer with respect to all contracts. The producer's interest in all contracts will be terminated.
7:7:10.1.2.2.30.5.330.7 7 Agriculture XIV B 1466 PART 1466—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM E Subpart E—General Administration   § 1466.56 Environmental credits for conservation improvements. CCC       (a) A participant in EQIP may achieve environmental benefits that may qualify for environmental credits under an environmental credit-trading program. NRCS asserts no direct or indirect interest on these credits. However, NRCS retains the authority to ensure that EQIP purposes are met. In addition, any requirements or standards of an environmental market program in which an EQIP participant simultaneously enrolls to receive environmental credits must be compatible with the purposes and requirements of the EQIP contract and with this part. (b) The participant must meet all O&M requirements for EQIP-funded activities, consistent with §§ 1466.21 and 1466.22. Where activities required under an environmental credit agreement may affect the land and conservation practices under an EQIP contract, NRCS recommends that EQIP participants request assistance with the development of a compatibility assessment prior to entering into any credit agreement. The EQIP contract may be modified in accordance with policies outlined in § 1466.25, provided the modification meets EQIP purposes and is in compliance with this part. (c) EQIP participants may not use EQIP funds to implement conservation practices and activities that the participant is required to establish as a result of a court order. EQIP funds may not be used to satisfy any mitigation requirement for which the EQIP participant is responsible.

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